USDCHF: Prefer to sell rallies

Jim Langlands FX Charts

USDCHF: 0.9783

US$Chf fell to a to 7 week low on the back of the Trump concerns on Wednesday and looks as though there could be more downside to come.

The daily momentum indicators are now pointing sharply lower, and are aligning with the short term charts although they are becoming oversold so some short term consolidation may be needed. If we do head lower, then below the 0.9774 session low, there is then little support to be seen until we reach 0.9735 and 0.9705. A break of the rising trend support would then open the way to 0.9600/40 although that remains some way off.

On the topside, the initial resistance will come in at the previous low of 0.9813, above which could see a run back to 0.9850 although this seems unlikely today.

Trading from the short side with a SL placed above 0.9850 seems to be the plan.

24 Hour: Prefer to sell rallies		Medium Term: Mildly Bearish
Resistance		Support
0.9936	(50% of 1.0100/0.9774)	0.9774	Session low
0.9900	(38.2% of 1.0100/0.9774)	0.9735	(76.4% of 0.9549/1.0343)
0.9885	Minor	0.9705	Rising trend support
0.9850	(23.6% of 1.0100/0.9774)	0.9675	Minor
0.9815	Minor	0.9640	Minor

Author

Jim Langlands

FX Charts

Jim Langlands began his trading career in the commodities markets in London in 1976, before moving to Australia in 1979 to work as a floor trader on the Sydney Futures Exchange.

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